Global X Seeks to Launch Four Hedge Fund ETFs

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Global X, a provider known for its niche exchange traded fund products, has filed with the Securities and Exchange Commission to add four specialized ETFs that seek to provide investors exposure to hedge-fund and other money manager strategies.

The filing does not include ticker symbols or expense ratios. The new ETFs are based on Structured Solutions AG indices, which include securities based on quarterly hedge fund and activist investor filings with the SEC. Consequently, the ETFs will rebalance quarterly.

Hedge funds cater to sophisticated investors, with a net worth of more than $1 million, and use investment strategies like leveraged, long, short and other derivative positions. The new funds help provide hedge fund-like strategies to the average retail investor.

“Before the launch of QAI, hedge fund investing was generally limited to instittuions and high net worth individuals.” Adam Patti, CEO of IndexIQ, said in a press release. “QAI changed all of that. While the concept was novel at the time, QAI has performed as we anticipated over the past three years and has attracted more than $200 million in assets.”

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